Wheaton Precious Metals is one of the largest precious metal streaming companies in the world that generates its revenues from the sale of precious metals and cobalt.

The company enters into purchase agreements (“PMPAs”) to purchase the entireity or a portion of the precious metals or cobalt production from mines located across the globe for an upfront payment and an additional payment upon the delivery of the precious metal or cobalt.

As of Sep 30, 2023, the company had 29 long-term purchase agreements with 23 different mining companies, for the purchase of precious metals and cobalt. These agreements relate to 18 mining assets which are currently operating, 14 which are at various stages of development and four have been placed in care and maintenance or have been closed.

Following the PMPAs, Wheaton acquires metal production from the counterparties for an initial upfront payment plus an additional cash payment for each ounce or pound delivered that is fixed by contract, generally at or below the prevailing market price. The company’s production profile is driven by the volume of metal production at its various mining assets.

The primary drivers of the company’s financial results are the volume of metal production at the various mines to which the PMPAs relate and the price realized by Wheaton upon the sale of the metals received.

The company offers investors leverage to increasing precious metals prices, a sustainable dividend payout as well as organic and acquisition growth opportunities.

Wheaton’s operating costs are contractually set at the time the stream is entered into, which enables investors to benefit from cost predictability and strong margin growth amid rising metal prices.

Wheaton is focused on adding additional production capacity from high-quality accretive metals. Its business model focuses on reducing risk while leveraging higher commodity prices. The company continues to add streams which bring immediate production, as well as medium and longer-term growth to its robust portfolio of assets.